A lawful solution to our current financial problems
The "Bailouts" of the financial industry and the Auto Industry were unconstitutional. But then so has the "financial system" in the United States of America been unconstitutional since at least 1933. The "New Deal" was a major step in the ongoing conversion of our constitutional republican form of government to a constitutional dictatorship at best and, yes, even possibly a socialist police state. However, the "New Deal" was not the first major step. Documented history proves that the perversion of our governments first started shortly after their creations in 1776 and 1788, and has continued in varying degrees and intensity ever since. Power and greed have always been powerful incentives for corruption.
Clearly, "We the people" have been betrayed by those in government, at all levels, for many, many years. The present so-called "economic crisis" is yet another example of the perversion of our lawful American constitutional form of government.
Much has been written about such subjects as the Federal Reserve System, the War and Emergency Powers, the IRS and the Central Banks. I shall not repeat them here. However, we must understand these and many other matters in order to fully comprehend the vast corruption in our country today and the true cause of the many problems that face us all.
The so-called "home mortgage crisis" was obviously created by bankers and those in government, and made possible by certain attorneys and judges. To understand this we need only look at how commercial banks create "fiat money" out of thin air when an alleged "loan" is made to purchase a house.
First, a Buyer signs a sales agreement/contract with a Seller for the purchase of a house. As soon as this contract is accepted and signed by the Seller and the Seller accepts the "earnest money" put down by the Buyer, there is a meeting of the minds and the ownership of the house changes hands from the Seller to the Buyer with certain conditions that must be met before the Buyer can take possession of the house.
One of the conditions in a "real estate contract" is almost always that a loan must be obtained from a bank. Therefore, the Buyer goes to a bank for a "loan". The bank creates a promissory note and a mortgage. The promissory note, a "high-class IOU", is signed by the Buyer/"Borrower" and returned to the bank. The bank "monetizes" the promissory note/ IOU to create an "on demand account" at the bank for the Buyer/"Borrower". The bank neither commits nor loans any of its own assets or any of the assets of the bank's depositors when this "on demand account" is created. At the closing for the house sale, the Buyer/"Borrower" takes possession of the house and the Seller gets the check drawn against the "on demand account" created by the bank. The bank is given fees and generally "points" (some percentage of the "loan" amount) at the closing. The bank is thus well compensated for its minimum efforts in this transaction. However, the bank demands that the "Borrower" pay principle and interest on the "loan" which was based solely on the "promissory note/IOU of the Buyer/"Borrower", that is, solely on the credit of the Buyer/"Borrower". The bank, which loaned none of its assets or the assets of its depositors, is making 100% profit on the principle and all the interest for the life of the alleged loan. This is government sanctioned and promoted theft. It is also, at a minimum, massive deceit, misrepresentation, and fraud.
The bank, or some other financial company acting for the bank, then sells the "monetized" promissory note, bundled with other notes, as "derivatives" on the world financial market. This method is used with both private and public "loans" in order to create huge amounts of "fiat money" to sustain the paper "monetary system" created in 1933 by FDR and the New Deal at the direction of the Federal Reserve Bank of New York and certain attorneys and judges.
Apparently, since government has been spending so much for so long, particularly in the last two decades, new and creative methods for creating easily obtainable "loans" were authorized by the Federal Reserve, the United States Congress, and Presidents Bill Clinton, George W. Bush and by Barack Hussain Obama II. Fannie Mae and Freddie Mac, for example, owned or guaranteed over "$5 Trillion" in mortgages in 2011,which is approximately half of the then outstanding "negotiable instruments" in the United States. Many of those "loans" were high risk "home loans", such as "adjustable rate" or "no money down" mortgages. Over $24 Billion worth of these "loans" were on depressed properties in 2011.
When the "adjustable rate" or "no money down" mortgage payment exceeded the amount that the Buyer/"Borrower" could pay per month and/or the alleged market value of a house (inflated as they still are) falls below the remaining amount due on the mortgage, the "Borrower" simply stopped paying the bank. This allegedly created the financial crisis. But the banks did not "loan" anything. They simply lost the huge amounts of cash that they were stealing from the people who pledge their own credit, which allowed the banks to create the "fiat money" out of thin air.
So the correct solution to the current alleged "financial crisis" was and is to say to the bankers that they have been committing this massive fraud, not only on the people of the United States of America, but throughout the world, for a long time and that their criminal activities are now over. We owe nothing to the banks. All of the "loans" in "default", as well as all other "loans", are null and void as a matter of law. Further, everyone who has paid on a "Loan, promissory note or mortgage" since at least 1971, if not 1933, is entitled to be given back every "dollar" (adjusted for inflation to the time of the repayment) in both principle and interest which he or she gave the bank or mortgage company. Further, each and every individual (bankers, government officials, attorneys, judges, etc.) involved in these serious and infamous criminal activities (treason and felonies, at a minimum) must be prosecuted, fined and sent to prison. All of their assets must be seized and returned to the harmed parties, and State or federal treasuries. All of the alleged federal debt must be lawfully discharged. Think of this as a Biblical jubilee. If anyone objects to this, let them pay the alleged debt.
This solution would be the lawful and the right thing to do. It would certainly be a tremendous boost to the economy and would bring the true criminals involved to justice.
At a minimum, we the people also need to eliminate the Federal Reserve and the IRS, both of which are unconstitutional. We need to return to the use of constitutional money, "gold and silver coins", and to demand that all of those in government read, study and understand, as well as, support, obey and defend the Constitution for the United States of America and the Constitution for the State in which they are domiciled and/or currently make their home. We must demand that a constitutional financial system and spending be followed.
Until we once again have a constitutional republican form of government in which "original intent" and "strict construction" of our Constitutions control all of those in government at all levels and at all times, we will continue to experience the increasing loss of our freedoms and liberties. If we are to effectively demand our constitutionally secured, protected and guaranteed natural, inherent and indefeasible rights, we must know what they are, stand together and demand that all of those in government always strictly follow their constitutional "oath of office". This is the required American "Rule of Law".
We the people need to return to the moral principles upon which these United States of America was founded and to "pledge to each other our Lives, our Fortunes, and our sacred Honor" as the framers of the "Declaration of Independence" did in the summer of 1776.
Our very survival depends on taking our Country back from those who have stolen it.